Problem

The equity sections from Jetta Corporation’s 2011 and 2012 balance sheets follow. Sto...

The equity sections from Jetta Corporation’s 2011 and 2012 balance sheets follow.

Stockholders’ Equity (December 31, 2011)

Common stock— $20 par value, 15,000 shares authorized,

8,500 shares issued and outstanding 

 

$170,000

Paid-in capital in excess of par value, common stock

30,000

Retained earnings

135,000

Total stockholders’ equity

$335,000

Stockholders’ Equity (December 31, 2012)

Common stock—$20 par value, 15,000 shares authorized,

9,500 shares issued, 500 shares in treasury

 

$190,000

Paid-in capital in excess of par value, common stock

52,000

Retained earnings ($20,000 restricted by treasury stock)

147,600

 

389,600

Less cost of treasury stock

(20,000)

Total stockholders’ equity

$369,600

The following transactions and events affected its equity during year 2012.

Feb.15

Declared a $0.40 per share cash dividend, date of record five days later.

Mar. 2

Purchased treasury stock for cash.

May15

Declared a $0.40 per share cash dividend, date of record five days later.

Aug. 15

Declared a $0.40 per share cash dividend, date of record five days later.

Oct.4

Declared a 12.5% stock dividend when the stock’s market value is $42 per share.

Oct. 20

Issued the stock dividend that was declared on October 4.

Nov.15

Declared a $0.40 per share cash dividend, date of record five days later.

Required

1.. How many common shares are outstanding on each cash dividend date?


2. What is the total dollar amount for each of the four cash dividends?


3. What is the amount of the capitalization of retained earnings for the stock dividend?


4. What is the per share cost of the treasury stock purchased?


5. How much net income did the company earn during year 2012?

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